Goldman Sachs lowered the target price of Maoye International (0848.HK) slightly from HK$3.5 to HK$3.4, reaffirming that the purchase rating remains unchanged.

Goldman Sachs pointed out that Maoye recently acquired Jinzhou Land Development Department Store in Liaoning Province, and also obtained actual control over Bohai Logistics and is expanding its business in the north/northeast market. This move will increase its capital expenditure, but it is unlikely that there will be significant returns in the short term, reducing its earnings per share forecast for 10-12 slightly to less than 1%.

Maoye rose 1.8% to HK$2.82 yesterday.